Job Creation Continues

217,000 jobs were created in the month of May according to a recent report published by the Bureau of Labor Statistics. The print was roughly in line with expectations and was driven by healthcare and business services hiring. The unemployment rate remained unchanged at 6.3%. Goldman Sachs noted the level of nonfarm employment exceeded its 2008 peak, although the working-age population grew “significantly” in the interim. The economy added roughly 200,000 jobs each month over the past year and the broad consensus is additional consumer buying will ensue. More jobs and increasingly heated rhetoric surrounding wage increases reinforce our call for higher interest rates in twelve and twenty-four months, absent a crash. Potential global weakness appears to be the only thing weighing on interest rates as even inflation indicators are pointing upward.